Use the Information Below to Answer the Following Question(s)

question 86

Multiple Choice

Use the information below to answer the following question(s) .

During the year, Cornell produced and sold 60,000 units of product at a sale price of $8.00 per unit. There was no beginning inventory of product at the start of the year.
-The Sage Group produces a single product selling for $60 per unit. Variable costs are $12 per unit and total fixed costs are $6,000. What is the contribution margin ratio?

• A) 0.48
• B) 0.20
• C) 0.80
• D) 1.25

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Definitions:

One-tailed Hypothesis

A hypothesis that specifies the direction of an expected difference or relationship, testing for the possibility of an effect in one direction only.

Two-tailed Hypothesis

A hypothesis test that considers both directions of effects by investigating the possibility of a relationship in two ways, either greater than or less than.

Valid Hypothesis

A scientifically grounded assertion that can be tested through empirical research or experimentation to be either supported or refuted.

Research Hypothesis

A specific, testable prediction about the expected outcome in a study, often indicating a predicted relationship between variables.